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IMC > Sales Promotions > Flashcards

Sales Promotions Flashcards

1
Q

Direct inducement that offers extra incentives anywhere along the marketing channel to enhance or accelerate the products movement from producer to consumer

A

Sales promotions

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2
Q

Sales promotions aimed at members of the distribution channel are called

A

Trade promotions

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3
Q

Examples of direct inducement

A

Money
Prizes
Extra products
Gifts

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4
Q

This is designed to change to timing of a purchase or to shift inventory to others in a channel

A

Sales promotion

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5
Q

Worldwide percentages of advertising, consumer sales promotion, and trade promotion

A

Advertising 25%
Consumer sales promotion 15%
Trade promotion 60%

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6
Q

3 reasons for the growth of sales promotions

A

Accountability
Media shifts
Marketplace changes

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7
Q

Accountability (reason for growth of sales promotion)

A

Pressure of short term sales

Desire to know ROI

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8
Q

Marketplace changes influencing sales promotion (consumer behavior, pricing)

A 
Less loyal, more risk averse
Consumer expectations of discounts
Battle for market share
Parity products
Power of retrailer
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9
Q

5 objectives of promotions

A 
Generate trial
Encourage repeat purchases
Increase brand awareness
Build traffic for a retailer
Build a brand
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10
Q

Push strategy for sales promotions

A

Get your products out and into the retailer
Producer -> resellers -> end users
Marketing communications between all

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11
Q

9 types of trade promotions

A 
Slotting allowances
Trade deals
Premiums & contests
Display allowances
Co-op advertising
Buyback allowances
Advertising allowances
Push money & spiffs
Meetings/conventions
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12
Q

Manufacturer pays retailer for shelf or floor space for a new product

A

Slotting allowances (trade promotion)

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13
Q

Manufacturer offers retailer short term discounts or other dollar inducements
Retailers usually pass the savings on to consumers through sale prices

A

Trade deals

trade promotion

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14
Q

Similar to slotting allowances but display instead of shelf space
Manufacturer pays retailer to make room for and set up displays
Ex. Dewalt in a Lowe’s

A

Display allowances

Trade promotions

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15
Q

Manufacturer agrees to buyback old product that hasn’t been sold
Often used for new products
Reduces risk for retailer

A

Buyback allowances

trade promotions

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16
Q

Manufacturer gives retailer either percentage off of purchases or a flat fee with the intent that the retailer will use the $$ to advertise the products

A

Advertising allowances

Trade promotion

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17
Q

Manufacturer reimburses retailers a % of advertising costs for advertising their products

A

Co-op advertising

Trade promotions

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18
Q

Cash payments given to sales staff for reaching specific sales goals or pushing certain products

A

Push money/Spiffs

Trade promotions

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19
Q

Special prizes and gifts given to retailers for reaching specific sales goals or pushing certain products
-can be given to retailer

A

Retail premiums and contests

Trade promotions

20
Q

In store display materials and advertising like devices they are designed to build traffic, exhibit and advertise the product, and promote impulse buying
Consumers make decisions in store 66% of the time

A

Point of purchase (POP) Materials

Trade promotions

21
Q

Pull strategy for consumer sales promotions

A

Consumers come to retailer and say I want this product

Product we

22
Q

8 types of sales promotions

A 
Price deals
Refunds and rebates
Sampling
Coupons
Premiums
Contest/sweepstakes
VIP cards
Specialties
23
Q

Larger cash refunds on items that usually require action on the consumer

A

Rebates

Consumer promotions

24
Q

The phenomenon by which consumer purchase products because of the rebate but fail to collect the rebate due to inconvenience
Approx 60% of all rebates

A

Slippage

25
Q

Giving product for free to consumers with the hopes of stimulating repeat usage
Most costly of all sales promotions
Effective for new products

A

Sampling

Consumer promotions

26
Q

Biggest sampling mistakes

A 
Sampling to current users
Focusing on targeting versus trial
Sampling without starting a conversation
Sampling without measurement
Thinking you don’t have anything to sample
27
Q

Retailer vs manufacturer sponsored
Redemption rate highest for these on or in packages
Free standing inserts have higher redemption rate than newspapers or magazines

A

Coupons

Consumer promotions

28
Q

Coupons printed at checkout counter

A

Catalina coupons

29
Q

Item offered free or at a bargain price to encourage the consumer to buy an advertised product
Direct vs mail

A

Premiums

Consumer promotions

30
Q

Putting the brands name on giveaways (swag)

A

Specialties

Consumer promotions

31
Q

Discounts given when you present a savings card

A

VIP cards

Consumer promotions

32
Q

Contests vs. sweepstakes

A

Contests depend on skill

Sweepstakes random

33
Q

Pros of sales promotions

A

Quick
Effective
Measurable

34
Q

Cons of sales promotion

A

Expensive
Easily coped
Eroded brand loyalty (encourages deal proneness)
Not always completely measurable

35
Q

Launch of an attractive and hard to imitate promotion (the monopoly window)

A

Low consumer response delay
High competitive response delay
Higher layoffs

36
Q

Launch of easily imitated or over complex promotion

A

High consumer response delay
Low competitive response delay
Lower layoffs

37
Q

Do or don’t?

Promote if others are promoting and you compete on price

A

Do! I’ll

38
Q

Do or don’t?

Be the only one in your industry offering a promotion

A

Don’t!

39
Q

Do or dont?

Promote a product where additional inventory will increase consumption levels (ex. Food)

A

Do!

40
Q 
Do or don’t?
Use restrictions (time limit, purchase limit, etc)
A

Do!

41
Q

Is BOGO or 50% or 1/2 off better?

A

BOGO

42
Q

What range of percentages off should you offer?

A

20-40%

43
Q

Do or don’t?

Remind consumers of the “regular” price

A

Do!

44
Q

Do or don’t?

Frequently promote

A

Don’t

45
Q

Do or don’t?

Provide a reason for the promotion

A

Do!

46
Q

Do or don’t?

Promote if you have high quality/high price position

A

Don’t!

IMC (15 decks)

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